Consider the following two pumps at an interest rate of 6%. determine which one should be installed based on annual worth analysis?

By

(A) Interest rate table method (B) Spreadsheet method (excel)

	Vender 1	Vender 2	Vender 3
First cost, $	-200,000	-550,000	-1,000,000
Annual O&M costs $/year	-50,000	-20,000	-10,000
Revenue, $/year	120,000	120,000	110,000
Salvage value, $	25,000	0	500,000
Life	10	15